To get the most out of the global recovery, equity investors should look to Europe. This according to a recent Bloomberg article.
In an interview last week, Bjorn Lind, a portfolio manager at Sweden-based AMF Fonder AB, said: “Earnings growth will be better in Europe in the coming years and, most importantly, longer.” Lind says AMF Fonder is overweight Europe and underweight North America in its global funds, but he sees economic growth and some upside for the U.S. if President Trump “can deliver some tax cuts, some infrastructure investments, transforming the animal spirit to demand and investments.”
According to Lind, AMF Fonder’s “basic view is that the U.S. stock market will be at this level, or a bit higher, at the end of the year.” He prefers industrials and financials over utilities, consumer staples and real estate, according to the article. “Many banks are interesting,” he says, mentioning JPMorgan as well as smaller institutions such as PNC and KeyCorp.